The Issue With IRS Back Taxes And Which Programs To Relieve Yourself
What happens when the IRS comes knocking at your door? Do you ignore them and hope they go away, or does the thought of paying back taxes make you feel sick to your stomach?
The IRS has been a huge pain for many people. When the tax deadline comes around, many of us have to scramble to make sure we've paid everything that is due from last year. There are also those who find out they owe money because they didn't report all their income or haven't filed in years. And then there are others who never file taxes at all! But what if you owed back taxes and had no idea how to pay them?
Problem: People don’t always pay all of their income owed to the government on time which may result in unpaid federal taxes or penalties that need to be paid. This could lead people into a situation where they owe money that they don’t know how to repay it off due lack of funds. In these situations, many will turn towards programs offered through the U.S Department of Treasury in order find relief from their financial burdens caused by past outstanding debt.
The Ultimate Tax Debt Relief Program
There are many programs that are offered in order to solve your tax-related issues in some sort of way. But there is a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program.
This program is designed to relieve not only the IRS, but also your back taxes. It does this by making sure you are filing accurately and gives up-front payment options solutions for those who can't afford their tax debt payments. This relief program utilizes four of the major tax resolution strategies into one consolidated program!
As one of the four major relief strategies within the IRS Fresh Start Program, an install agreement is a payment plan that is created between the taxpayer and IRS that makes it possible to pay off back taxes over a period of time.
It's important to note that this program does not defer tax debt payments, but rather allows you to pay them in installments over a predetermined period of time.
Offer in Compromise
The Offer in Compromise (OIC) is arguably one of the most crucial components in the IRS Fresh Start Program. An OIC is a settlement that is agreed to by the IRS and taxpayer, in an effort to resolve their tax debt. What makes this program shine is the sheer fact that your tax liability is settled for less than the initial amount, nearly wiping out most of your debt or sometimes even completely! The goal of this program is make sure that taxpayers can continue living a normal life without having to worry about paying back taxes for years or decades.
Currently Non-Collectible Status
The next vital program within the IRS Fresh Start Program is Currently Non-Collectible Status (CNC). The status of CNC is given to taxpayers who have been found unable to pay their outstanding tax debts by the government. The IRS collection process is temporarily halted when an account is labeled as Currently Not Collectible, which means no harassing letters, intimidating phone calls, or threatening levies will be sent.
The fourth program is Penalty Abatement. This status suspends the collection of late-payment penalties and prevents levy/garnishment actions taken by the government when a taxpayer cannot pay their tax debt in full, or even at all. The government will also not attempt to collect any interest that has accumulated on your account since you first became a CNC account. This program is different from Currently Not Collectible, because penalty abatement suspends penalties and interest on the debt, whereas CNC is simply the IRS terminating their attempts to contact and seek collection from you.
The IRS Fresh Start Program
The IRS Fresh Start Program is the one-stop-shop tax relief program that has allocated all of the aforementioned programs that provides taxpayers with an opportunity to have their taxes adjusted and assessed by the IRS. This can be very beneficial for those who owe back taxes, are in debt, or just want to better assess their current financial situation. The IRS Fresh Start Program has many benefits including:
Reducing your income tax liability
Eliminating penalties and interest on your debts
Avoiding liens and levies on your assets
Creating a new payment plan with the IRS if you cannot afford payments now
See if you qualify for the Fresh Start Program today!
Resolve your tax debt before the IRS surprises you with late fees and penalties!
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